ITO, WARD-64(2), NEW DELHI vs. DIVYA CHANANA, NEW DELHI

The ld. DR appeared on behalf of the Revenue. In some of the cases, the assessees put in appearance through their Representatives, while in others, the assessees remained unrepresented.

We have heard the parties. It is found that pursuant to the mandate of section 268A, the CBDT has issued Circular No. 03 of 2018, dated 11th July, 2018 with retrospective effect, revising the monetary limit to Rs.20,00,000/- for not filing appeals before the Tribunal. It is further found that as the tax effect involved in the instant appeals is less than Rs.20,00,000/-, the extant appeals are not maintainable. The ld. D.R., although supported the orders of the Assessing Officer, but ITA Nos. 4635,6485, 3592,3593/Del/2016 and 6134,5607,5501,957,5976/Del/2017 could not controvert the fact that tax effect involved in these appeals is less than Rs.20,00,000/-.

Going by the prescription of the above stated Circular, it is observed that the Instruction is applicable to the pending appeals also with retrospective effect and there is a clear-cut direction to the Department to withdraw or not press such appeals filed before the ITAT, wherein tax effect is less than Rs.20,00,000/-. We are, therefore, of the view that the Revenue should have either not filed the instant appeals before the Tribunal or withdrawn the same as the tax effect in these appeals is admittedly less than the prescribed limit, i.e., Rs. 20,00,000/- for not filing the appeal. Accordingly, we dismiss the instant appeals without going into merits of the cases.

The ld. DR has brought to our notice a letter dated 20.08.2018 of the Director (ITJ), CBDT, New Delhi addressed to All the Principal CCITs in which para no. 10 of the earlier Circular dated 11.7.2018, enumerating certain instances in which the appeals should be contested notwithstanding the low tax effect, has been revised. He, however, could not place any material on record to demonstrate that any of the above appeals is covered by the amended para of the Circular. Under these circumstances, we dismiss all the appeals filed by the Revenue and give liberty to the Department to file Miscellaneous Applications, if it is found that either the tax effect is more than the prescribed limit of Rs.20,00,000/- or the appeals gets covered in the revised para 10 of the letter dated 20.08.2018. Accordingly, the appeals of the Revenue stand dismissed.

Now we turn to the C.O. filed by an assesse. Since the appeal of the Revenue from which such C.O. has arisen, has been dismissed hereinabove, the C.O. has become infructuous and stands dismissed.

In the result, all the appeals of the Revenue as well as the C.O. of the assessee stand dismissed.